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AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis

TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD

1.83  -0.03 (-1.61%)

Fundamental Rating

7

Overall ARG gets a fundamental rating of 7 out of 10. We evaluated ARG against 818 industry peers in the Metals & Mining industry. While ARG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARG. Finally ARG also has an excellent dividend rating. With these ratings, ARG could be worth investigating further for value and dividend investing!.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

ARG had positive earnings in the past year.
In the past year ARG had a positive cash flow from operations.
ARG had positive earnings in 4 of the past 5 years.
ARG had a positive operating cash flow in each of the past 5 years.
ARG.CA Yearly Net Income VS EBIT VS OCF VS FCFARG.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M

1.2 Ratios

ARG has a Return On Assets of 10.27%. This is amongst the best in the industry. ARG outperforms 94.16% of its industry peers.
Looking at the Return On Equity, with a value of 19.46%, ARG belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
ARG has a Return On Invested Capital of 16.05%. This is amongst the best in the industry. ARG outperforms 97.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARG is in line with the industry average of 11.89%.
The last Return On Invested Capital (16.05%) for ARG is above the 3 year average (12.05%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.27%
ROE 19.46%
ROIC 16.05%
ROA(3y)6.12%
ROA(5y)3.38%
ROE(3y)11.87%
ROE(5y)6.39%
ROIC(3y)12.05%
ROIC(5y)N/A
ARG.CA Yearly ROA, ROE, ROICARG.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

ARG has a Profit Margin of 11.23%. This is amongst the best in the industry. ARG outperforms 93.34% of its industry peers.
In the last couple of years the Profit Margin of ARG has declined.
ARG has a Operating Margin of 17.62%. This is amongst the best in the industry. ARG outperforms 91.71% of its industry peers.
In the last couple of years the Operating Margin of ARG has declined.
The Gross Margin of ARG (20.43%) is better than 87.09% of its industry peers.
In the last couple of years the Gross Margin of ARG has declined.
Industry RankSector Rank
OM 17.62%
PM (TTM) 11.23%
GM 20.43%
OM growth 3YN/A
OM growth 5Y-19.62%
PM growth 3Y-26.06%
PM growth 5Y-22.49%
GM growth 3Y94.62%
GM growth 5Y-13.23%
ARG.CA Yearly Profit, Operating, Gross MarginsARG.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARG is still creating some value.
ARG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARG has less shares outstanding
Compared to 1 year ago, ARG has an improved debt to assets ratio.
ARG.CA Yearly Shares OutstandingARG.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
ARG.CA Yearly Total Debt VS Total AssetsARG.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

ARG has an Altman-Z score of 2.95. This is not the best score and indicates that ARG is in the grey zone with still only limited risk for bankruptcy at the moment.
ARG's Altman-Z score of 2.95 is in line compared to the rest of the industry. ARG outperforms 59.92% of its industry peers.
ARG has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.39, ARG belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
ARG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
ARG has a Debt to Equity ratio of 0.06. This is in the lower half of the industry: ARG underperforms 64.81% of its industry peers.
Although ARG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.39
Altman-Z 2.95
ROIC/WACC1.76
WACC9.13%
ARG.CA Yearly LT Debt VS Equity VS FCFARG.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M

2.3 Liquidity

ARG has a Current Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
ARG has a Current ratio of 0.91. This is in the lower half of the industry: ARG underperforms 65.22% of its industry peers.
A Quick Ratio of 0.80 indicates that ARG may have some problems paying its short term obligations.
ARG has a worse Quick ratio (0.80) than 65.63% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.8
ARG.CA Yearly Current Assets VS Current LiabilitesARG.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

6

3. Growth

3.1 Past

ARG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 800.00%, which is quite impressive.
Measured over the past years, ARG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.16% on average per year.
Looking at the last year, ARG shows a quite strong growth in Revenue. The Revenue has grown by 11.86% in the last year.
ARG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.85% yearly.
EPS 1Y (TTM)800%
EPS 3Y-12.32%
EPS 5Y-22.16%
EPS Q2Q%150%
Revenue 1Y (TTM)11.86%
Revenue growth 3Y11.11%
Revenue growth 5Y2.85%
Sales Q2Q%49.82%

3.2 Future

Based on estimates for the next years, ARG will show a very strong growth in Earnings Per Share. The EPS will grow by 132.85% on average per year.
Based on estimates for the next years, ARG will show a quite strong growth in Revenue. The Revenue will grow by 8.81% on average per year.
EPS Next Y657.5%
EPS Next 2Y165.89%
EPS Next 3Y132.85%
EPS Next 5YN/A
Revenue Next Year22%
Revenue Next 2Y10.43%
Revenue Next 3Y8.81%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ARG.CA Yearly Revenue VS EstimatesARG.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
ARG.CA Yearly EPS VS EstimatesARG.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.1 -0.1 0.2

9

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.15, the valuation of ARG can be described as very reasonable.
Based on the Price/Earnings ratio, ARG is valued cheaply inside the industry as 93.89% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.39. ARG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.03 indicates a reasonable valuation of ARG.
93.34% of the companies in the same industry are more expensive than ARG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARG to the average of the S&P500 Index (94.38), we can say ARG is valued rather cheaply.
Industry RankSector Rank
PE 9.15
Fwd PE 9.03
ARG.CA Price Earnings VS Forward Price EarningsARG.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

ARG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARG is cheaper than 95.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARG indicates a rather cheap valuation: ARG is cheaper than 97.69% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.48
EV/EBITDA 3.62
ARG.CA Per share dataARG.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5

4.3 Compensation for Growth

ARG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ARG's earnings are expected to grow with 132.85% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y165.89%
EPS Next 3Y132.85%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.74%, ARG is a good candidate for dividend investing.
ARG's Dividend Yield is rather good when compared to the industry average which is at 7.63. ARG pays more dividend than 99.18% of the companies in the same industry.
ARG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 6.74%

5.2 History

On average, the dividend of ARG grows each year by 17.33%, which is quite nice.
ARG has been paying a dividend for at least 10 years, so it has a reliable track record.
ARG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.33%
Div Incr Years1
Div Non Decr Years3
ARG.CA Yearly Dividends per shareARG.CA Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.05 0.1 0.15

5.3 Sustainability

93.80% of the earnings are spent on dividend by ARG. This is not a sustainable payout ratio.
ARG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP93.8%
EPS Next 2Y165.89%
EPS Next 3Y132.85%
ARG.CA Yearly Income VS Free CF VS DividendARG.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M
ARG.CA Dividend Payout.ARG.CA Dividend Payout, showing the Payout Ratio.ARG.CA Dividend Payout.PayoutRetained Earnings

AMERIGO RESOURCES LTD

TSX:ARG (2/11/2025, 7:00:00 PM)

1.83

-0.03 (-1.61%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners23.81%
Inst Owner ChangeN/A
Ins Owners12.72%
Ins Owner ChangeN/A
Market Cap301.09M
Analysts84
Price Target1.77 (-3.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.74%
Yearly Dividend0.09
Dividend Growth(5Y)17.33%
DP93.8%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.59%
Min EPS beat(2)-33.99%
Max EPS beat(2)18.81%
EPS beat(4)2
Avg EPS beat(4)45.21%
Min EPS beat(4)-33.99%
Max EPS beat(4)197.03%
EPS beat(8)4
Avg EPS beat(8)-5.24%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.15%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)4.76%
Revenue beat(4)1
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-6.78%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-1.16%
Revenue beat(12)4
Avg Revenue beat(12)-0.89%
Revenue beat(16)4
Avg Revenue beat(16)-2.25%
PT rev (1m)-13.32%
PT rev (3m)-13.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)7.14%
EPS NY rev (3m)7.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)2.3%
Valuation
Industry RankSector Rank
PE 9.15
Fwd PE 9.03
P/S 1.14
P/FCF 5.48
P/OCF 4.39
P/B 1.98
P/tB 2.03
EV/EBITDA 3.62
EPS(TTM)0.2
EY10.93%
EPS(NY)0.2
Fwd EY11.07%
FCF(TTM)0.33
FCFY18.26%
OCF(TTM)0.42
OCFY22.76%
SpS1.61
BVpS0.93
TBVpS0.9
PEG (NY)0.01
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 10.27%
ROE 19.46%
ROCE 22.29%
ROIC 16.05%
ROICexc 19.4%
ROICexgc 19.88%
OM 17.62%
PM (TTM) 11.23%
GM 20.43%
FCFM 20.82%
ROA(3y)6.12%
ROA(5y)3.38%
ROE(3y)11.87%
ROE(5y)6.39%
ROIC(3y)12.05%
ROIC(5y)N/A
ROICexc(3y)16.09%
ROICexc(5y)N/A
ROICexgc(3y)16.48%
ROICexgc(5y)N/A
ROCE(3y)16.73%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-11.38%
ROICexc growth 3YN/A
ROICexc growth 5Y-11.4%
OM growth 3YN/A
OM growth 5Y-19.62%
PM growth 3Y-26.06%
PM growth 5Y-22.49%
GM growth 3Y94.62%
GM growth 5Y-13.23%
F-Score9
Asset Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.39
Debt/EBITDA 0.12
Cap/Depr 41.56%
Cap/Sales 5.12%
Interest Coverage 23.75
Cash Conversion 86.63%
Profit Quality 185.42%
Current Ratio 0.91
Quick Ratio 0.8
Altman-Z 2.95
F-Score9
WACC9.13%
ROIC/WACC1.76
Cap/Depr(3y)65.71%
Cap/Depr(5y)54.04%
Cap/Sales(3y)7.52%
Cap/Sales(5y)6.67%
Profit Quality(3y)207.34%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)800%
EPS 3Y-12.32%
EPS 5Y-22.16%
EPS Q2Q%150%
EPS Next Y657.5%
EPS Next 2Y165.89%
EPS Next 3Y132.85%
EPS Next 5YN/A
Revenue 1Y (TTM)11.86%
Revenue growth 3Y11.11%
Revenue growth 5Y2.85%
Sales Q2Q%49.82%
Revenue Next Year22%
Revenue Next 2Y10.43%
Revenue Next 3Y8.81%
Revenue Next 5YN/A
EBIT growth 1Y207.05%
EBIT growth 3YN/A
EBIT growth 5Y-17.32%
EBIT Next Year852%
EBIT Next 3Y104.96%
EBIT Next 5YN/A
FCF growth 1Y57.28%
FCF growth 3Y-41.55%
FCF growth 5YN/A
OCF growth 1Y32.21%
OCF growth 3Y0.84%
OCF growth 5Y-5.67%